Economist Yusuf Dodia has challenged the Zambia Statistical Agency (ZamStats) to clarify the parameters used in determining the inflation rate, arguing that the prices of goods and services remain high despite inflation dropping to a single digit of 9.4 percent in January.
And Mr. Dodia has stressed that it is naïve for government to expect businesses to reduce prices without considering the underlying dynamics that drive costs.
He explained that while the appreciation of the Kwacha and the reduction in inflation are significant economic fundamentals, most Zambians are yet to feel the benefits.
Speaking to MAFKEN News, Mr. Dodia noted that the appreciation of the local currency has largely benefited businesses importing merchandise, while locally manufactured goods continue to sell at high prices due to elevated fuel and electricity costs.
He emphasized that a 30 percent appreciation of the Kwacha and the drop in inflation should, in theory, positively impact the economy, but citizens are left questioning why the cost of living remains high.
